All Forum Posts by: Chris Nonn

Hey guys,

So I thought I had a good structure set up but am second guessing now.

It is set up as a partnership, 60% me 40% other partner. The company borrowers money from other partners LLC at 4% for 30 year loan with a ballon at 7th year. When I have been doing the analysis the return is 20-23% return, cash flowing 6k a year.

 The first house was bought in June,rented Aug 1..numbers look like this.. 

Initial purchase-72k

Rehab-13k

Payment 405-loan 35$ insurance 100-taxes 30 trash..total payment 570

Rent 1200-570=630*.6=378/month for me

Second House is same just for sake of saving time.

My question is that is has been a few months and I have not drawn out a dime from account. I believe it is kind of my fault for not keeping track of expenses to the dime. I know after a month or two things should even out. The question is does this partnership seem even, to good for me, to good for him?

Do the numbers seem like they are deals you guys would be buying?

Thanks for your input.

Chris

It wasn't that I lost it over 2k, after taking a second-third look at property I found some big ticket items that doubled my initial rehab budget and also would of been an issue in resale value 10 years down the road

So I have walked through 30+ homes in last 4 months and put 2 offers on homes which I was outbid. 2 weeks ago I put an offer in on a home which I thought was decent. 3bd 1.5bath, 1.12 acres, property tax 1700, asking 129,900, 8k rehab (carpet, appliances, paint, 2 windows, 1 side door, some grading work around home). After initial offer of 113k, Freddie mac home, there was a multiple offer situation and wanted final and best so we bumped it up to 117k, ...numbers were working out at decent return. I went to home to look at it again and somehow I didn't see a bowing wall (scary!!!) so it would of been another 5k or so to fix...also saw a old water line above furnace!! with those big ticket items in mind the bank countered at 119k and we backed out. So kinda disappointed I don't have anything locked in for spring to work on but glad I noticed everything and backed out.

Had a perfect potential tenant that said she wanted to rent my current home (now fixing another to move in their) , single, newly divorced lady, no kids, awesome income, background, ect. she applied and went through steps, I told other applicants that house was taken. she went on vacation for a week, another week went by with conversation and then the following Monday she informed me that her situation changed and wont be renting house out. discouraged now but am still hopeful that I will find a good first tenant.

haven't posted on here for a while and figured that I would keep everyone informed

Chris

thanks everyone, they ended up paying for the electric and fixing the roof.. they also left the house a mess and got an extra 600 to clean the furniture out of it (which paid for the dumpster and my time). Settled this past Friday on the home. This is my second home, turning first into rental. without this site and listening to ever podcast, I wouldn't be doing what I am. I have a lot to do, will post pictures soon. thanks everyone

I have a contract on my second house!!! Viewed house and had some problems so signed "as is". Viewed entire house and knew issues. Appraisal guy for bank came and wanted foundation and roof inspection. Inspector came and foundation is fine and around one of the chimneys there was small leak due to flashing which I knew about. ALSO, due to a recent storm a branch fell on overhead electric line which a pole that was attached to house and went through part of roof was partially ripped away from house and now you can see through part of roof for underneath house. To get the final go ahead on roof inspection that has to be fixed as well. This happened after I had the house under contract. Only a few hundred dollar fix but should this be out of my pocket or the sellers? I know I have to pay for flashing around chimney but I don't want to pay for electric pole/roof fix. I settle in 6 days, should I just pay for it or is there something I can do/ should I do. Thanks

It was noted during the appraisal and bank is calling for roof and foundation inspection

Have a contract on a house, was appraised at 177k, offer was accepted at 140k, signed as is but has foundation issue on one bowing wall and mortgage company is wanting a certification from foundation inspector. I am assuming that the inspector will want the wall fixed. I am willing to put X amount down to fix. seller has no money but house is completely paid for and in a will (3 adults that want the money and want it sold). How/can I negotiate this?? any advice is much appreciated

If you decide to hand dig( which will take 10x longer then you think it will) make sure you bench the dirt back incase it collapses, you don't die/ get hurt. I would have a excavation company come look at it, expect to pay 80-150 for machine and operator per hour. They will have ideas for you if machines won't work as well

Thanks for the response Joel. The first house has about 40% equity so that shouldn't be a flag but I can see where that would be a worry if it was under water.

I believe they sell the loan (applying now with new lender).

I tried getting a loan about two months ago to no luck (same lender as first house). The house I am trying to buy was under contract until the guy backed out yesterday due to some septic issues. The realtor isn't going to put back on market till I know if I can get loan (or not get loan)...While this guy is giving me the ringer, would you suggest applying with a big bank that will not sell off my loan. I am trying to get the pre approval to put contract on home. I understand that there will be another inquiry on credit but its all isolated.

Between two months ago and now-came into 20%down for new home and also got rid of a lot of debt (sold pickup truck) that I had.

Thanks for feedback